Sun Pharmaceutical Industries Limited, India’s largest pharmaceutical company, is considering expanding its manufacturing presence in the United States to strengthen its foothold in the world’s biggest drug market. The move follows robust second-quarter results and comes amid uncertainty over new US tariffs on imported medicines.

US Manufacturing Expansion

Richard Ascroft, CEO for North America Business at Sun Pharma, said the company already operates manufacturing units in the US and is evaluating further expansion options. He described the tariff environment—following the Trump administration’s imposition of 100 per cent duties on branded and patented medicines—as “very fluid and uncertain”, noting the challenge in assessing its impact on the firm’s generics and innovative medicine portfolios.

Strong Q2 Performance

Sun Pharma reported consolidated sales of Rs 144,052 million in Q2, an 8.6 per cent year-on-year increase, while net profit rose 2.6 per cent to Rs 31,180 million. EBITDA grew 14.9 per cent to Rs 45,271 million, with margins at 31.3 per cent. R&D investment stood at Rs 7,827 million, representing 5.4 per cent of sales.

Global sales of Innovative Medicines reached USD 333 million, up 16.4 per cent year-on-year, accounting for 20.2 per cent of total revenue. This growth outpaced the company’s overall sales rise, underscoring the strategic importance of its high-value innovative products.

Market Performance and Strategy

In India, formulation sales grew 11 per cent to Rs 47,348 million, lifting market share to 8.3 per cent, according to Pharmarack. In contrast, US formulation sales declined 4.1 per cent to USD 496 million, though growth in innovative therapies offset the fall in generics. Notably, US sales of Innovative Medicines surpassed generics for the first time, reflecting a clear strategic shift towards speciality products.

R&D and Product Pipeline

Sun Pharma continues to invest in research and development with six novel entities currently in clinical stages. Executive Chairman Dilip Shanghvi confirmed plans to launch UNLOXCYT, an FDA-approved advanced skin-cancer treatment, in the US during the second half of FY2026. The company also intends to file an SPLA for ILUMYA in psoriatic arthritis within the same period.

The company has 548 approved Abbreviated New Drug Applications (ANDAs) and 117 awaiting FDA approval. During the quarter, Sun Pharma filed four new ANDAs and secured five approvals.

Outlook

Analysts believe Sun Pharma’s robust financials and growing focus on innovation position it well for sustained global growth. Expansion in the US could further enhance competitiveness, though the new tariff regime poses short-term challenges.

The company’s balance of generics and high-value speciality drugs, combined with continued R&D investments, signals a strategic pivot towards sustainable, innovation-driven growth in both developed and emerging markets.

(Source: scanX)